KARACHI – An association of jewllers feared that gold price could cross the mark of Rs150,000 per tola following the imposition of 17 percent sales tax on gold jewellery.
The 17% tax on gold ornaments was approved in the recently approved Supplementary Finance Bill, popularly known as mini-budget.
Pakistan Gems Jewellery Traders and Exporters Association (PGJTEA) while talking to local media proposed the government to impose tax ‘jewellery making’ rather than on complete final product.
PGJTEA chairman Akhtar Tesori termed the imposition of tax a “disastrous decision”. “We reject 17% new tax on gold and silver jewellery,” he added.
He said that the tax would not only put burden on poor and middle-income group persons, who buy small ornaments for their daughters’ weddings, adding that the move will also ruin the gold business in the country.
A number of people linked to the profession will lose their jobs if the demand of the precious metal goes down due to surge in prices.